Bitfarms Ltd. (BITF) Stock Crashes 17% After AI Pivot Forces Bitcoin Mining Shutdown

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Another 'strategic pivot' that conveniently ignores crypto's first rule: never interrupt your opponent while they're making a mistake.

TLDR

• Bitfarms abandons mining to transform its Washington site into an AI powerhouse.
• A $128M deal fuels Bitfarms’ rapid move into high-performance compute markets.
• Rising mining costs push Bitfarms toward scalable, stable AI infrastructure.
• Washington’s 18-MW facility becomes the core of Bitfarms’ AI growth strategy.
• Losses mount, but Bitfarms bets big on AI to secure future revenue strength.

Bitfarms Ltd.(BITF) shares began a sweeping shift in strategy after its stock fell 17% to $2.60 at market close.

Bitfarms Ltd., BITF

The company moved to shut down its Bitcoin mining business and prepare for a full transition into AI-focused high-performance computing. This decision set a firm end date for mining operations and marked a major repositioning within the digital infrastructure sector.

Washington Conversion Marks the Start of an AI-Driven Strategy

Bitfarms advanced its new plan by selecting its Washington facility as the first site for complete conversion. The company prepared the 18-megawatt location to support powerful compute workloads with up to 190 kilowatts per rack. In addition, the site will install advanced liquid cooling systems to meet rising thermal demands.

The company secured a binding agreement worth $128 million with a major American infrastructure provider. This partner will supply all required IT hardware and building materials to complete the shift. Moreover, Bitfarms projected that the Washington site will reach full readiness by December 2026.

This new setup will feature modular designs, improved efficiency, and infrastructure aligned with next-generation GPU systems. The company structured the facility to support large-scale workloads across multiple deployment phases. As a result, Bitfarms positioned the site as a Core revenue driver for its emerging AI segment.

Shift Reflects Changing Mining Economics and Sector Pressures

The mining sector continued to face higher costs and tighter margins, which pushed several large operators to repurpose their resources. Bitfarms followed this wider trend as power contracts and existing infrastructure offered a fast path to AI workloads. Therefore, the firm saw an opportunity to capture stronger recurring revenue from the growing demand for compute capacity.

The first half of 2025 signaled ongoing pressure on mining returns. Bitfarms reported weakened gross margins and higher production costs during this period. At the same time, the company observed greater market momentum across AI infrastructure providers.

Share performance strengthened for much of 2025 as markets reacted to the new strategy. The company also prepared a $500 million convertible senior notes offering to fund expansion while containing dilution. Additionally, Bitfarms viewed the Washington shift as a foundation for future operational cashflow.

Financial Strains Add Pressure to Restructure Operations

Bitfarms recently posted a quarterly net loss of $46 million as operational costs increased. The loss exceeded analyst expectations and highlighted the strain on mining profitability. Furthermore, revenue grew 156% year over year to $69 million, yet expenses continued to outpace gains.

The company framed its AI transition as essential to long-term stability. It aimed to reduce reliance on volatile bitcoin markets and redirect capital into stronger infrastructure ventures. Consequently, it planned to wind down all mining activities by 2027.

Bitfarms positioned the Washington facility as the early anchor for this transformation. The company expected the project to support operating needs, debt service, and future capital deployments. With this approach, Bitfarms signaled a decisive MOVE away from mining and toward a steady AI-centric model.